EMEA News
As 2020 Approaches, Malta Works to Dispel Notion It's A "Flag of Convenience"
As tighter environmental regulations for shipping come into force, including a 0.50 percent sulfur cap for bunkers in 2020, Transport Malta says it is working to eliminate perceptions that the Maltese registry is a "flag of convenience" through the implementation of local and International Maritime Organization (IMO)-backed legislation, local media reports.
"In 2015 alone, the Maltese shipping registry registered a considerable increase over 2014, while the registered gross tonnage amounted to 66.2GT. This trend has persisted over the last decade, with the Maltese shipping registry strengthening gradually," Edward Mario Camilleri, a lawyer at SAGA Juris Advocates, recently wrote for a Maltese newspaper.
Camilleri suggests that, in order to ensure the strength of Malta's fleet, tighter regulation on shipping emissions and efficiency must be examined.
"It is time to address a concern that may potentially jeopardise Malta's progress in the maritime sector, namely energy-efficient shipping, with international benchmarks set to enter into force by 2020, both at an EU level and at an international level."
"As a maritime nation, it is in Malta's interest to start preparing for these deadlines in the immediate future in order to ensure that it is fully compliant with these standards," Camilleri added of coming tightening global and European regulations.
Camilleri says that, due to greater awareness, financial incentives, and legislative support, the shipping industry, including shipbuilders and charterers, is becoming more receptive to energy efficient shipping.
Failure to prepare for coming tighter environmental regulations on shipping "will undoubtedly have a negative effect on Malta's reputation as a strong flag state," adds Camilleri.
He also suggests that the role of the EU is particularly important, pointing out that about 19 percent of the global shipping fleet above 19GT is registered within EU.
Earlier this month, Kitack Lim, IMO's Secretary-General, issued a letter to EU officials, urging them to address shipping emissions as a united front with IMO, noting that specific proposed regional action "significantly risks undermining efforts on a global level."
